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Local gas prices up 14 cents in a week

Published: Wednesday, February 6, 2013 at 1:00 a.m.

Last Modified: Tuesday, February 5, 2013 at 8:45 p.m.

Staff and Wire Reports

The national average for a gallon of regular jumped 17 cents in the last week, reaching $3.53 as of Tuesday. In the Bradenton-Sarasota-Venice region, the average was $3.59, according to AAA, up 14 cents from a week ago.

Driving the price spike nationwide is a surge of speculative investment in the markets for oil and gasoline, as sentiment about the economy improves. The run-up primes the country for another expensive year at the gas pump, at a time when Americans are already spending a greater portion of their income on fuel than they have in decades.

"There is this idea that the worst is past and the economy is going to chug along, even if it's chugging along slowly," said Brian Milne, refined fuels editor for the Telvent DTN business information service.

Gasoline futures contracts traded on the New York Mercantile Exchange have surged about 12 percent since mid-January, although their price dipped on Monday. Crude oil, which had been stuck around $87 per barrel for much of November and December, now costs $96.

Economic growth usually leads to stronger gasoline sales, although that has not happened in recent years. But the number of big investors betting that gasoline prices will rise -- taking long positions on gas futures -- has now reached its highest point since April, Milne said.

At the same time, refineries have started their spring "turnaround" season, a period when they cut production, undergo maintenance, and switch to making fuel blends used in warm weather, reducing supplies.

<p>Staff and Wire Reports</p><p>The national average for a gallon of regular jumped 17 cents in the last week, reaching $3.53 as of Tuesday. In the Bradenton-Sarasota-Venice region, the average was $3.59, according to AAA, up 14 cents from a week ago.</p><p>Driving the price spike nationwide is a surge of speculative investment in the markets for oil and gasoline, as sentiment about the economy improves. The run-up primes the country for another expensive year at the gas pump, at a time when Americans are already spending a greater portion of their income on fuel than they have in decades.</p><p>"There is this idea that the worst is past and the economy is going to chug along, even if it's chugging along slowly," said Brian Milne, refined fuels editor for the Telvent DTN business information service.</p><p>Gasoline futures contracts traded on the New York Mercantile Exchange have surged about 12 percent since mid-January, although their price dipped on Monday. Crude oil, which had been stuck around $87 per barrel for much of November and December, now costs $96.</p><p>Economic growth usually leads to stronger gasoline sales, although that has not happened in recent years. But the number of big investors betting that gasoline prices will rise -- taking long positions on gas futures -- has now reached its highest point since April, Milne said.</p><p>At the same time, refineries have started their spring "turnaround" season, a period when they cut production, undergo maintenance, and switch to making fuel blends used in warm weather, reducing supplies.</p>